NEW YORK (TheStreet) -- Shares of Aaron's(AAN) - Get Report were spiking 9.32% to $24.75 on heavy trading volume late Friday afternoon after the company posted better-than-expected earnings for the 2016 third quarter.
Before today's market open, the Atlanta-based rent-to-own company reported adjusted earnings of 50 cents per diluted share, surpassing analysts' estimates of 47 cents per share.
Revenue for the period was $769.0 million, below analysts' projections of $784.4 million.
"Our third quarter results benefited from strong lease portfolio performance at progressive and disciplined execution in our core business," CEO John Robinson said in a statement.
"The core business remains challenging. Ongoing efforts to manage costs and control inventory levels helped offset a decline in same store revenues, and we're taking additional steps to rightsize our store base," he added.
During the period, same-store sales fell 4.6% year-over-year. Analysts were expecting a decline of 1.3%, according to FactSet.
For 2016, Aaron's now sees adjusted earnings per share between $2.16 and $2.30 vs. its prior view for $2.13 to $2.33 per share. Analysts surveyed by FactSet are forecasting full-year earnings of $2.26 per share.
More than 1.13 million of the company's shares changed hands so far today vs. its average 30-day volume of 546,152 shares.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AAN